Over the past decade, three community hospitals have provided services for the same population and its neighboring suburbs. While supported to various degrees by their associated health care systems, the costs and quality of the services have become a subject of concern for the hospitals’ staffs, local trustees, and the city’s residents. Seeking to continue providing access to quality health services, two of the hospitals began a discussion to explore options of joining together.
HSPG reviews the current capital, property, and human resources assets of the participants in the proposed merger or acquisition and evaluates the size, condition, age, and other factors of the facilities and occupied land to meet the identified needs and future plans of the combined entity. The capital costs and operational expenses related to projected service volumes, and building construction and maintenance are compared to equivalent timeframes that not assume that the merger or acquisition occurs.
MERGERS AND ACQUISITIONS
CASE STUDY: Town Community Hospital & Rural Community Hospital, Midwest, US
Trinity Health’s Trinity Rock Island
(merger of United Medical Center and Franciscan Hospital),
Rock Island, IL
ValleyCare Health System
(merger of Northside and Southside Hospital)
(merger of Blodgett and Butterworth Hospitals),
RELATED CLIENT LIST
WHAT IS THE ACTION PLAN?
WHAT ARE THE DIFFERENT OPTIONS FOR MERGING?
HSPG looks at the master facility planns short and long-term corporate and clinical considerations upon the master plans and uses the analysis to guide the key factors for educating the wide and varied audience to such a discussion.
IS IT THE RIGHT TIME TO COMBINE?
HSPG developed and analyzed the options for offering projected patient volumes in one or both of the facility locations. The projected capital costs for each option were calculated and compared to the schedule, amount, and effectiveness in meeting quality standards.
The discussions of the options and the recommendations of the merging hospitals’ leadership resulted in the sale of one hospital to the health system that owned the other.